Many Financial Companies ‘Complacent over Reputation’

Most companies agree that a bank’s reputation for protecting against IT threats is an important factor when choosing a partner.

However, a joint survey conducted by B2B International and Kaspersky Lab suggests that less than 50% of financial companies regard loss of trust and reputation as one of the most severe consequences of an IT incident.

The survey results show that many customers are unhappy with the quality of protection provided by their financial partners. Only 53% of respondents believe that their financial partners are doing their best to protect customers’ financial information. At the same time, over the past year almost 41% of financial companies and 48% of e-commerce operations lost financial information due to cybercrime.

These cases can damage the relationship between financial organisations and their major customers, many of whom see information security as a critical factor. The survey found 74% of companies agreeing that they choose a bank based on its cyber-security reputation while 82% are willing to consider leaving a bank that suffers a data leak.

In contrast, only 47% of financial companies and 40% of companies working in the e-commerce sector named the loss of reputation and trust among the three most damaging consequences of IT security incidents.

Yet the survey also shows that reliably protecting payments means financial institutions retain their loyal customers and increase their income. Fifty-three per cent of the companies surveyed said they were ready to pay more for reliable protection of their financial transactions. Notably, among small businesses that figure accounts for 43%, while 64% of big companies are prepared to pay additional costs for their financial security.

“In a highly competitive market, financial companies should value every client,” said Ross Hogan, global head of the fraud prevention division at Kaspersky Lab.

“Reports of a data leak or customers’ uncertainty about the information security of a bank can disrupt that professional relationship. We advise financial institutions to take extra care of their partners, including installing specialised security solutions on computers and mobile devices.”

4 views

Related reading

Far and away, the largest financial market on the planet is the foreign exchange currencies market, where on average individuals and organisations trade more than $5 trillion daily. In the FX world, the ability to master the market isn't considered a luxury for treasury officers–it's a necessity.

Using data for predictive analytics is the future of banking success, argued Jean-Laurent Bonnafé, CEO of BNP Paribas, in his session on how the bank is reinventing its approach to innovate with and for corporates.

The payments landscape for corporates hasn’t gotten much clearer over the last decade, but global multi-banking continues to grow. Twenty-three per cent of corporates reportedly originate payments with 11 or more banks, and more than 24% operate within each of the major world regions.